09:10 AM EDT, 08/08/2024 (MT Newswires) -- Oil edged higher early on Thursday, rising for a third day as strong summer demand in the United States and geopolitical risks top concerns over slowing economies in the U.S. and China.

West Texas Intermediate crude oil for September delivery was last seen up US$0.23 to US$75.46 per barrel, while October Brent crude, the global benchmark, was up US$0.09 to US$78.42.

The Energy Information Administration on Wednesday reported U.S. oil inventories fell by 3.7 million barrels last week, well more than the consensus estimate for a drop of 0.7 million barrels, according to analysts polled by Reuters.

However, even after the recent gains, oil is down 8.6% over the past month as demand from China, the No.1 importer slows as its economy weakens, while concerns over the health of the U.S. economy are also heightened amid high interest rates and weak economic data.

Concerns OPEC+ will begin returning 2.2-million barrels per day of voluntary cuts to market in the fourth-quarter are also checking prices, though the group has said any additional supply will depend on market conditions.

"Crude oil has started August on the defensive, with prices suffering additional losses on top of those seen last month, amid headlines being dominated by the poor outlook for Chinese demand and now also increased focus on whether the US economy can avoid a recession," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.

Geopolitical tensions are offering support to the commodity, as violence in the Middle East continues. Iran is expected to retaliate against Israel for last week's assassination of a senior leader of the Hamas militant group in Tehran last week, while Israel continues its war in Gaza and spars with the Iran-backed Hezbollah militia in Lebanon.